Galliford Try dismisses fears over spending cuts

Chief executive Greg Fitzgerald said: "My gut feel is that the cuts will be tough, but not as tough as we all think. The arrival will not be as bad as the journey."

Galliford, which put the roof on Wimbledon's Centre Court, expects a short-term dip in construction revenues before the gap is eventually made up by the private sector, where it has seen "limited" signs of life among blue-chip clients.

The firm, which lifted the dividend to 12.5p, has maintained its £1.8 billion "defensive and diverse" order book since the end of June and boosted margins.

The firm posted a 7% rise in underlying, pre-tax profits to £26.1 million in the year to June 30.